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Our aim is to create "holy shit" moments for investors and traders alike. This is why our thought-provoking videos have been described as "TED Talks for Finance". Watch, learn and profit from the insights of the world's best investors

Waiting for Yields to Sink

Featuring Dr. Komal Sri-Kumar

Dr. Komal Sri-Kumar, president of Sri-Kumar Global Strategies, still likes buying 10-year Treasury bonds. Citing catalysts including the potential impact of trade tensions, he discusses why yields should fall by the end of the year, in this interview with Brian Price. Filmed on July 27, 2018.

Good interview.
One thing I don't understand is why banks cannot make money when the Central Bank interest rate is low.
A bank profits by lending at a margin that depends on the risk of the loan. For example if the rate is 7% and the Bank is lending out at 9% isn't it as profitable as lending at 2% when the rate is 0% (?)
Further more if the rate of the Central Bank is 0% doesn't it make bank lending less risky? A bad loan cannot creats a loss bigger the initial capital amount since there are no extended loss by accumulation over time. (?)

cr

cc r.

31 7 2018 06:34

Hotly Debated

10

Nice video. Dr. Sri Kumar is pretty clear and to the point.

DS

David S.

30 7 2018 20:48

Hotly Debated

20

It is a pleasure to listen to Dr. Sri-Kumar. His facts support his predictions and he may be correct. My uncertainty gauge, however, is off the scale. Since I do not have to invest, I will wait. DLS

ML

M L.

30 7 2018 20:28

Hotly Debated

40

...And the interviewer did a good job too. Good segment all round.

ML

M L.

30 7 2018 20:27

Hotly Debated

40

Komal is excellent. We need to have him back for a longer segment. I think he has been consistently right on a number of fronts over the years, and he is a very good orator.

RE

Richard E.

30 7 2018 19:02

Hotly Debated

16

"Give me a year for us to see a correction". Awesome. One can say that any given year. There was very little value-add in this video

V!

Volatimothy !.

30 7 2018 18:30

Hotly Debated

00

Brian looked surprised to hear a 15 to 20% correction within a year. I thought that was a conservative number.

AA

Aymman A.

30 7 2018 17:55

Hotly Debated

30

Excellent. Please have him back for bigger longer macro analysis of all markets.

JT

Jimmy T.

30 7 2018 15:12

Hotly Debated

20

The video is only 15 min, but the home page shows 25 min. The interest rate environment controls everything else.

RM

Russell M.

30 7 2018 14:47

Hotly Debated

42

I did not hear him address the affect of increased Treasury borrowing to fund the US tax cuts and Fed QT efforts including escalating the balance sheet runoff to $50 billion/mo in October. This would tend to prevent the 10 year from falling to 2.4% I would think.